HRM Report: Key Recruitment Challenges at Wesfarmers and Strategies

This report provides an executive summary and in-depth analysis of human resource management within Wesfarmers, a major Australian company. The report identifies key challenges in the recruitment process, including compliance with regulations, leadership development, workforce training, adapting to innovation, compensation issues, attracting and retaining talented employees, workplace diversity, organizational image, and labor supply/demand. It then proposes effective strategies to address these challenges, such as adhering to laws, focusing on leadership and teamwork, providing training and development, improving communication, creating effective compensation systems, and implementing strong branding and advertisement strategies. The report emphasizes the importance of a sustainable human resource department for the company's future growth and success. The analysis covers various aspects of HRM, including recruitment, selection, and employee retention, offering valuable insights into how Wesfarmers can optimize its workforce management practices.

Running head: Human resource management
Human resource management

Human resource management
Executive summary
The report is based on the human resource management. It explains the key challenges of the
recruitment process in the Wesfarmers Company. It is one of the biggest successful companies in
the coal mining industry. It explains that how the company is managing and controlling on these
issues. The report also explains the effective strategies to resolve these key challenges. An
organization cannot continue its business without effective workforce at the workplace. It
explains the significance of human resource management in an organisation.
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Table of Contents
Introduction.................................................................................................................................................4
Thesis statement..........................................................................................................................................4
Recruitment and selection...........................................................................................................................4
Strategies to address these challenges..........................................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9
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Introduction
The report talks about the key challenges for recruiting the workforce in an organization.
Wesfarmers Company has been selected to explain and address these key challenges and issues.
It also explains some effective strategies to overcome these challenges.
Wesfarmers Limited is an Australian company was founded in 1914. Its headquarter is
located in Perth, Western Australia. The company deals in chemicals, coal mining, fertilizers and
safety and industrial products. It is one of the biggest companies by revenue and currently,
approx 205,000 employees are employed in this company. In 1984, it was listed in Australian
security exchange and expanded its business as a major retail corporation in Australia. It
provides various products and services to the farmers of the Western Australia. The revenue of
the company is approx $65.98 billion (2016) and profit of the company is around $2.35
billion (2016). The total assets and total equity of the company are approx $40.78 billion (2016)
and $22.95 billion (2016). The main objective of the company is to expand its business
worldwide and achieve the long-term goals and objectives. In 2001, the company becomes a free
traded public listed company with excellent open ownership. The organization is acquiring other
business also, after becoming a public company (Jones, Willness & Madey, 2014).
Thesis statement
Wesfarmers is facing key challenges in regards to recruiting the workforce which
requires the company to form effective strategies so that it could achieve its goals and objectives.
Recruitment and selection
Recruitment is the process of analyzing and identifying the organizational needs and
requirements to employ the candidate in an organization. The selection is the process of choosing
and appointing a suitable and potential candidate for doing the job. Recruitment and selection are
the primary functions of human resource management (Jiang, Lepak, Hu, & Baer, 2012). The
Wesfarmers uses effective recruitment and selection process to select the applicants in the
organization. The human resource department plays a significant role in an organization. An
organization cannot survive its business and operations without effective human resource
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management. Sometimes, it becomes a series challenge for the company. The Wesfarmers is
facing the various key challenges for recruiting the workforce within the organization. The key
challenges which are faced by the company during the recruitment of labor force which have
been discussed below (Cook, 2016).
 Compliance and conformity with laws and regulations: It is the major key challenge
for recruiting the labor force in an organization. It is very serious key challenges for the
firm. Sometimes, Wesfarmers ignores the various employment laws, regulations, faith
and belief which are not applied by the organization (Salas, Tannenbaum, Kraiger, &
Smith-Jentsch, 2012).
 Measurement changes: It is another issue in the organization which affects the
productivity and efficiency of the firm. Further, it searches the potential and competent
people for doing task effectively, some workers take a lot of time to cope with these
challenges and obstacles. In this way, it is reducing the morale and productivity of the
firm (Majumder & Hossain, 2012).
 Leadership development: After various researches, it has been analyzed that leadership
development and programs play a significant role in order to meet the organizational
challenges of the firm. But now a day’s the company is facing various challenges while
implementing the leadership development and other programs. The company is not being
able to implement the leadership development programs (Bratton & Gold, 2012).
 Workforce training and development: Wesfarmers invests the huge amount in the
training and development of inappropriate and lower level of workers for doing the task.
It is the biggest key challenge for recruiting the employees at the workplace. Thus, the
company finds many troubles and key challenges for the appointment of employees.
Further, the company may take a lot of works and resources within the organization.
Wesfarmers does not provide the training and development programs to employees.
Thus, the employees are not able to understand the culture and environment of the
company (Shaffer, Kraimer, Chen & Bolino, 2012).
 Adapting to innovation: Training and development are continuously changing process.
Therefore, the company uses innovation and new technology but it is not able to provide
training to the new candidate. Hence, many challenges are faced by the organization.
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 Compensation: Many companies are thinking that how to make the best structure for
employees compensation. Sometimes, the company is not being able to make effective
compensation and remuneration policies for the employees. Thus, it faces many
difficulties during recruiting the labor force at the workplace (Howe-Walsh & Schyns,
2010).
 Recruiting the talented employees: Talent is very important for the employees but it
takes a lot of time and money. Talented candidates join the company at higher package;
they demand higher salary and wages. But the company is not able to afford the extra
salary. It is very difficult to know whether an applicant will really fit and talented with
good communication skills or not. In this way, it is a major issue in recruitment and
selection.
 Retaining talented employees: There is high competition exists in the market for
talented employees. Employee turnover is also very expensive and it affects negatively
the business success and growth. Therefore, the company cannot retain the talented
employees due to high competition (Stone & Deadrick, 2015).
 Workplace diversity: It is another issue in Wesfarmers Company. The cross-cultural
differences exist in the organization thus; the company cannot diversify its business due
to the cultural differences. On the other hand, generation differences also influence the
recruitment of labor force in an organization. Currently, the company is appointing only
fresher’s for doing the job, therefore, it affects the business activities and operations of
the company. The company cannot gain the experience and knowledge from the
adolescent candidate. The organization does not give the negotiated package to
employees.
 Organizational image: The organizational image is the major key challenge for the
recruiting the workforce in the organization. Wesfarmers is one of the biggest companies
in Australia. But the goodwill of the company is not good in the market due to its
competitors. It influences the recruitment and selection at the workplace (Nilsson &
Ellström, 2012).
 Labor supply/demand: The labor supply/ demand are also important factors which
influence the operations and activities of the company. Sometimes it happens that the
company demands large labor force for doing activities and operations but it offers fewer
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packages to candidates thus, the applicants do not join the company. It shows the
shortage of labor force and it is another key challenge for the organization. All these key
challenges influence the operations of the company. So the company should control all
these recruitment key challenges to gain the growth and success in the future (Baum,
2015).
Strategies to address these challenges
There are some strategies to address and reduce the key challenges of recruitment, they are
discussed below.
 The company should follow all the federal laws and regulations. All these laws and
regulations are important to wage payment, hiring practices and workplace safety. It can
reduce the key issues of recruitment at the workplace.
 The company should focus on the leaders and team players to maintain collaboration and
cooperation in the company. The organization should provide more opportunities to
candidates for enhancing and increasing the motivation.
 The training and development do not take a lot of time or money. Thus, the company
should provide the training and coaching to employees. The organization should also
provide the online training and development programs to candidates. If the company
provides training to employees then it will enhance the loyalty and increase the
productivity and efficiency of employees (Pereira & Anderson, 2012).
 The communication is a major problem in Wesfarmers, therefore, the top management,
managers, and supervisors should maintain proper communication with candidates. In
this way, the employees will feel comfortable and give full contributions in success and
growth of the company.
 Compensation is an important factor for the candidates. The company should create
effective rewards system to compensate the candidates for their marvelous performance.
Further, the organization should offer the incentive programs like a bonus, medical
benefits, and other extra benefits to enhance the morale of the employees.
 Staffing is another good strategy to address and reduce the key challenges of recruitment
at the workplace. It is the best way to find the right candidate for the business activities
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and operations. It will save the time and money and provide the potential candidates for
future (Thite, Wilkinson & Shah, 2012).
 The company should create a culture of teamwork and collaboration; it will help to
reduce the diversity issue. It also provides the positive and favorable working
environment to the company. The company should also provide the diversity training
programs to employees for reducing the cross-cultural differences across the world.
Further, the company should eliminate and reduce the risk and uncertainty of the
employees (Kaufman, 2012).
 The company should adopt the excellent advertisement and brand strategies to gain the
competitive advantages in the market. The company must use effective branding and
advertisement strategies then it can reduce the key challenges of recruitment.
In this way, Wesfarmers can improve the recruitment process and it can reduce the key
challenges of the recruitment at the workplace. In this way, the company can also build the
sustainable human resource department in the company. It will help to attract the potential and
competent candidates for doing the job (Sparrow & Cooper, 2012).
Conclusion
Wesfarmers is one of the biggest companies in coal mining industry. The report is based
on the recruitment strategies of the company. The report presents the key challenges of recruiting
the labor force at the workplace. Thus, the company is making the effective strategies to
overcome these challenges. But it should improve its strategies and policies to improve the key
challenges and obstacles. It will help to improve the efficiency and productivity of the employees
as well as organization. The company should focus on the skills and abilities of the employees.
In this way, the company can build the sustainable human resource department in the
organization. The organization should also promote and encourage the motivation of employees.
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